New York City's tech sector has overtaken San Francisco for the first time, employing 394,300 technology workers across the metropolitan area. That represents an 8.4 percent increase since 2022, when the region added 30,640 jobs. San Francisco's tech employment figures lag behind, according to a new CBRE North American tech talent report.
This shift reshapes commercial real estate fundamentals across both coasts. New York's growing tech workforce drives demand for office space in Manhattan, Brooklyn, and emerging hubs like Long Island City. Companies like Google, Amazon, and Meta have expanded New York operations, anchoring demand for Class A office towers and mixed-use developments. Rising headcount translates to higher occupancy rates and rental growth in competitive submarkets.
San Francisco's decline reflects years of remote work adoption, office-to-residential conversions, and departures by major employers. The Bay Area struggles with vacancy rates exceeding 20 percent in some neighborhoods. Landlords face pressure to repurpose obsolete office stock into housing or convert buildings entirely.
For New York commercial landlords, this trend supports property values and lease rates. New office construction, particularly in tech-friendly neighborhoods, commands premium pricing. Developers chase mixed-use projects combining offices, apartments, and retail to capture multiple revenue streams from the expanding workforce.
Tenants benefit from choice. New York's competitive market pressures landlords to offer flexible leases, amenity upgrades, and lower rates. However, prime locations near transit in Manhattan remain expensive. Brooklyn's tech corridor, particularly around Williamsburg and DUMBO, attracts smaller firms seeking lower rents than Midtown.
For residential landlords, tech worker concentration boosts apartment demand and rental rates. Young engineers and product managers sustain strong rental markets in neighborhoods near tech offices. Landlords targeting this demographic can command higher rents for